The New York Times, and especially Paul Krugman, continue to force feed us the hypothesis that we can fix our economy merely by spending more money. According to Krugman, we can tax the rich. That one or two percent of the population have an almost unlimited ability to pay for whatever ails the nation, and our access to this pot of gold is only denied by the feckless nature of elected Democrats and the evil nature of Republicans.
But even Krugman admits that the rich cannot bail us out all on their own. He now claims that promises to keep taxes low on the middle class should be shelved as well. Krugman sees higher taxes for the entire productive class. In addition Krugman and the New York Times, have floated the idea that we can continue to borrow, with essentially no limits and no policies that would control costs, other than military costs.
This puts on display an absolutely amazing inability to figure out how humans really work. If I am an employer, (The only people who hire are employers) and I see that the poorer half of Americans are getting a ONE TIME ONLY check from the government, I’m sorry, but it does not inspire me to go out and add workers, that I will spend months training. It does not help me decide to put everyone in their family, up to the 26 year old college graduate, on a Healthcare insurance program that I will pay for. It does not overcome the resistance I might have towards all the forms I have to file and regulations I need to understand both when hiring and later on when firing any new employee. No, by the time I get up to speed, that $500 check will be gone and I will be saddled with expenses that I cannot afford. I think I’ll pass.
If I offer to give people a rebate when they buy their car today, but not tomorrow, I will create sales today. Of course I will, but those sales will not come from people who were not going to buy a car anyway. They come from people who would have bought the car, without the rebate tomorrow, and after I have given the rebate out, there will be fewer people buying cars tomorrow.
If the Government hires hundreds of thousands of people to investigate, monitor, supervise, interfere with and regulate private business, those businesses will of necessity, slow down, because they are being investigated, monitored, supervised, interfered with and regulated. Not only do these jobs create a burden on the taxpayers, but they slow down the ability of the taxpayers to carry that burden.
I call this a Snickers Bar economy. At first it tastes great, and even makes you feel full. Unfortunately, it provides no nutrition, and soon leaves you famished.
We had a stimulus bill with a cost of 870 billion dollars. That is $2,900 dollars of debt for every man woman and child living in the US. We were promised that with this bill, unemployment would not go over 8 percent. In fact, we have not had a single month since the passage of the stimulus, where unemployment was less than 8 percent!
We had a cash for clunkers program, which artificially stimulated car sales but had no lasting effect.
We had a home buyer credit program. It pushed future sales into the timing of the program, and as a result, the April housing numbers were the worst since the great depression.
We knew this was coming. When Obama ran for President, he started every other speech with the claim “Only the government can…” He was not and is not able to understand the very simple statement: “Only employers can hire.” The way he sees it, employers are part of the problem. They need to starve a little more AND do all the heavy lifting.
In the mean time, he has spent all of his political capital and all of our real capital on empty calories. When we need real reasons for employers to hire, Obama is left lamenting the fact that he has run out of Snickers Bars.